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Insurance Requirements for Contractors

All contractors and vendors (service providers, suppliers, building or maintenance contractors, etc.) coming on to Loyola's premises to do work are required to carry insurance to protect themselves and Loyola University New Orleans. Insurance is necessary to cover any claims or losses for which the contractor or vendor may be responsible.

All contractors and vendors must procure, pay for, and maintain the required insurance coverage for the entire term of the purchase agreement or contract. All insurance policies are subject to the approval of the University and must be issued by insurance companies authorized to do business in the State of Louisiana and with an A.M. Best rating of A-:VIII or better. All insurance policies will contain a waiver of subrogation in favor of the University, and, except for Workers Compensation, shall name Loyola University New Orleans as additional insured.

Required Coverages

The types of insurance coverage and standard limits required by Loyola are described below. Loyola reserves the right to increase the minimum acceptable limits of coverage depending upon the activity involved in the contract or service.
The size and scope of the contract and the potential risk exposures involved will dictate the minimum limits of coverage required. The University's standard requirements are divided into three sets, indicating typical risk levels:

Workers Compensation & Employers Liability

As required by the State of Louisiana covering the requirements for all of the contractor/vendor's employees performing duties under a purchase agreement or contract. If any work is sublet, the contractor or vendor shall require all subcontractors to provide Workers Compensation Insurance for all of the latter's employees, unless such employees are covered by the protection afforded by the contractor or vendor. Employers Liability coverage must have a minimum limit of liability of $500,000 per occurrence.

Automobile Liability

Required of any contractor or vendor utilizing a vehicle in the performance of any purchase agreement or contract. Must cover, but not be limited to, hired and non-owned vehicles with a minimum combined single limit of liability of $1,000,000 per occurrence for bodily injury, death, and/or property damage.

Professional Liability - Errors and Omissions

Required of various professional service providers such as architects, engineers, consultants, etc.

Builder's Risk Insurance

Excess, Umbrella and Specialized Insurance

Required for projects and contracts that have special circumstances or hazards or are of large scope.

Evidence of Coverage

A Certificate of Insurance is a standard document issued by an insurance company to provide proof of an insurance policy. Departments should request Certificates of Insurance from contractors/vendors immediately upon an agreement to pursue a purchase or contract. Copies of the certificates must be forwarded to the Risk Management Office (Box 11) for approval.
Certificates must be received and approved by the University before work commences. Certificates must verify waiver of subrogation in favor of the University, shall indicate the University as additional insured, and shall specify that in the event of cancellation or material change in coverage, at least thirty (30) days prior written notice will be given to the University concerning such event.

Acceptability of Coverage

If at any time any of the insurance policies shall become unsatisfactory to the University as to form or substance, or if a company issuing any such policy shall become unsatisfactory to the University, the contractor or vendor shall obtain a new policy and submit a new certificate of insurance.

Subcontractors

The contractor or vendor shall include all subcontractors as insureds under its policies or shall furnish separate certificates for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.

Facility Improvements

The Physical Plant department must review any purchase agreements or contracts for operations or services involving repairs, maintenance or alteration to the University's buildings or equipment. Any department considering this type of activity is advised to contact Physical Plant prior to making financial commitments. Risk Management will review the scope of the project to determine additional insurance requirements, if required. The Facility Improvements standard insurance requirements should be used.

Construction and Renovation Projects

Construction or renovation projects with limited scope and with a cost of less than $100,000 are subject to the Facility Improvements standard. These minimum requirements may be increased depending upon the scope and specific hazards related to the project.
Construction or renovation projects exceeding $100,000 in cost are subject to the Construction Projects standard. Physical Plant and Risk Management will work closely to ensure the University's interests are properly protected.